Case 04 — Lululemon · Chip Wilson · 1998

You have one store, no ad budget, and a pair of yoga pants that costs four times what anyone pays today. How do you price it?

You have taken a design class in yoga pants because the cotton ones everyone wears go see-through when they stretch. You have made a technical fabric that does not. You have one small store in Vancouver that doubles as a design studio, no advertising budget, and no retail experience. A comparable pair of leggings at a department store sells for around $20.

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